Energy Blogs and Articles

The Sorry Tale of New Drax OCGTs Highlights Growing Capacity Market Irrationality

Drax has built three 299 MW OCGT plants that secured GB Capacity Market contracts, yet none can operate because grid connections have not been delivered. Under the Capacity Market rules, the lack of connection triggers non‑delivery penalties that could wipe out the entire annual payment. The scheme deliberately places connection risk on generators, exposing a regulatory flaw as connection delays become systemic. This situation underscores growing irrationality in the Capacity Market, threatening the procurement of new dispatchable gas capacity and inviting potential judicial review.